§ 35-20-2 - Policy. - Rhode Island Statutes

SECTION 35-20-2

   § 35-20-2  Policy. – (a) The legislature hereby finds that:

   (1) Fraud and errors in public and quasi-public programs aremore likely to occur from a lack of effective systems of internal accountingand administrative control in the state authorized public corporations.

   (2) Effective systems of internal accounting andadministrative control provide the basic foundation upon which a structure ofpublic accountability must be built.

   (3) Effective systems of internal accounting andadministrative control are necessary to assure that public and quasi-publicstate assets and funds are adequately safeguarded, as well as to producereliable financial information for the state.

   (4) Systems of internal accounting and administrative controlare necessarily dynamic and must be continuously evaluated and, wherenecessary, improved.

   (5) Reports regarding the adequacy of the system of internalaccounting and administrative control of each public corporation are necessaryto enable the executive branch, the legislature, and the public to evaluate thecorporation's performance of its public and quasi-public responsibilities andaccountability.

   (b) The legislature declares that:

   (1) Each public corporation must maintain effective systemsof internal accounting and administrative control as an integral part of itsmanagement practices.

   (2) The systems of internal accounting and administrativecontrol of each state agency shall be evaluated on an ongoing basis and, whendetected, weaknesses must be promptly corrected.

   (3) All levels of management of the public corporation mustbe involved in assessing and strengthening the systems of internal accountingand administrative control to minimize fraud, errors, abuse, and waste ofpublic and quasi-public funds.